Question 1

According to the provided text,
which of the following are considered 'bulwarks of the democratic system of government in India' alongside the Comptroller and Auditor General (CAG)?
1. The Supreme Court
2. The Election Commission
3. The Union Public Service Commission
4. The National Human Rights Commission
Select the correct answer using the code given below:

Accepted Answer

1, 2 and 3 only. The text explicitly lists the bulwarks of the democratic system in India as the Supreme Court, the Election Commission, the Union Public Service Commission, and the Comptroller and Auditor General (CAG). The National Human Rights Commission is not mentioned in this specific list.

Question 2

Consider the following statements regarding the Comptroller and Auditor General (CAG) of India:
1. The CAG is the head of the Indian Audit and Accounts Department.
2. The CAG's duty is to uphold the Constitution and parliamentary laws concerning financial administration.
3. The office of the CAG is a statutory body created by an Act of Parliament.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only. Statements 1 and 2 are correct as the CAG heads the Indian Audit and Accounts Department and is tasked with upholding financial laws. Statement 3 is incorrect; the office of the CAG is a constitutional body established under Article 148 of the Constitution, not a statutory body created by Parliament.

Question 3

Consider the following statements:
Statement I: The Comptroller and Auditor General of India (CAG) controls the entire financial system of the country at both the central and state levels.
Statement II: The CAG is described as the 'guardian of the public purse'.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I.. Both statements are factually correct based on the provided text. Statement II provides the conceptual basis for Statement I; because the CAG is the guardian of the public purse, it is vested with the power to control the financial system at both union and state levels to fulfill this role.

Question 4

With reference to the Comptroller and Auditor General (CAG), consider the following statements:
1. The office of the CAG is established under Article 148 of the Constitution of India.
2. Dr. B.R. Ambedkar considered the CAG to be the most important officer under the Constitution.
3. The CAG's authority to control the financial system is restricted to the central level only.
Which of the statements given above is/are NOT correct?

Accepted Answer

3 only. Statement 3 is incorrect. The text explicitly states that the CAG controls the financial system 'at both the levels–the Centre and the state'. Statements 1 and 2 are correct facts mentioned in the text. The question asks for the incorrect statement.

Question 5

Consider the following pairs with respect to the Comptroller and Auditor General (CAG):
1. Constitutional Provision : Article 148
2. Associated Department : Indian Audit and Accounts Department
3. Primary Role : Guardian of the public purse
4. Democratic Bulwark : Along with the Supreme Court and UPSC only
How many of the pairs given above are correctly matched?

Accepted Answer

Only three pairs. Pairs 1, 2, and 3 are correctly matched as per the text. Pair 4 is incorrectly matched because the text mentions the CAG is a bulwark along with the Supreme Court, the Election Commission, and the Union Public Service Commission. The word 'only' in the pair makes it incorrect as it omits the Election Commission.

Question 6

Consider the following provisions related to ensuring the independence of the Comptroller and Auditor General (CAG) of India:
1. He holds his office till the pleasure of the president.
2. He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.
3. His salary and other service conditions are determined by the President in consultation with the Parliament.
4. The administrative expenses of the office of the CAG are charged upon the Consolidated Fund of India.
How many of the statements given above are correct?

Accepted Answer

Only two. Statements 2 and 4 are correct. Statement 1 is incorrect because the CAG has security of tenure and can only be removed in the same manner as a Supreme Court judge, not at the President's pleasure. Statement 3 is incorrect because the CAG's salary and service conditions are determined by the Parliament, not the President.

Question 7

Consider the following statements:
Statement I: The Comptroller and Auditor General (CAG) of India can be removed by the president on the basis of a resolution passed by both Houses of Parliament with a special majority.
Statement II: The CAG holds his office during the pleasure of the president, though he is appointed by him.

Accepted Answer

Statement I is correct but Statement II is incorrect. The CAG is removed by the President on the same grounds and in the same manner as a Supreme Court judge, which involves a resolution passed by both Houses of Parliament with a special majority. Therefore, Statement I is correct. However, the CAG is provided with security of tenure and does not hold office during the pleasure of the President. Thus, Statement II is incorrect.

Question 8

With reference to the Comptroller and Auditor General (CAG) of India, consider the following statements:
1. The CAG holds office for a term of six years or up to the age of 65 years, whichever is earlier.
2. He can resign from his office at any time by addressing the resignation letter to the President.
3. The service conditions of persons serving in the Indian Audit and Accounts Department are prescribed by the Parliament.
Which of the statements given above is/are NOT correct?

Accepted Answer

3 only. Statement 3 is incorrect. The conditions of service for persons in the Indian Audit and Accounts Department are prescribed by the President after consultation with the CAG, not by Parliament. Statements 1 and 2 are correct descriptions of the CAG's term and resignation process, respectively.

Question 9

Consider the following actions related to the office of the Comptroller and Auditor General (CAG) of India:
1. Determination of the CAG's salary and other service conditions by the Parliament.
2. Alteration of the CAG's rights in respect of pension to his disadvantage after his appointment.
3. Holding further office under the Government of any state after he ceases to hold his office.
4. A minister taking responsibility in Parliament for any actions done by the CAG.
How many of the above actions are constitutionally permissible?

Accepted Answer

Only one. Only the first action is constitutionally permissible. The Parliament determines the CAG's salary and service conditions. The other three actions are explicitly prohibited to ensure the CAG's independence: his service conditions cannot be altered to his disadvantage post-appointment; he is ineligible for further government office; and no minister can take responsibility for his actions in Parliament.

Question 10

With reference to the appointment and oath of the Comptroller and Auditor General (CAG) of India, consider the following statements:
1. The CAG is appointed by the president of India by a warrant under his hand and seal.
2. Before taking office, the CAG makes and subscribes an oath before the Chief Justice of India.
3. The oath of the CAG includes a commitment to uphold the Constitution and the laws.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. The CAG is appointed by the President by a warrant, and the oath includes upholding the Constitution and laws. Therefore, statements 1 and 3 are correct. However, the oath is taken before the President, not the Chief Justice of India, making statement 2 incorrect.

Question 11

Consider the following duties with respect to the Comptroller and Auditor General (CAG) of India:
1. Auditing all expenditure from the Contingency Fund of India.
2. Compiling and maintaining the accounts of the Central Government.
3. Ascertaining and certifying the net proceeds of any tax or duty.
4. Advising the President on the form in which the accounts of the Centre and the states shall be kept.
How many of the duties mentioned above are currently performed by the CAG?

Accepted Answer

Only three. The CAG performs duties 1, 3, and 4. However, the CAG was relieved of the responsibility for compiling and maintaining the accounts of the Central Government in 1976, following the separation of accounts from audit. The CAG continues to compile and maintain the accounts of state governments.

Question 12

Statement I: The Constitution of India visualises the office of the CAG to be a Comptroller as well as an Auditor General.
Statement II: In practice, the CAG of India has no control over the issue of money from the consolidated fund and is concerned only at the audit stage after the expenditure has already taken place.

Accepted Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I.. Both statements are correct. The Constitution does envisage a dual role. However, in practice, the CAG's role is limited to that of an Auditor-General. Statement II correctly explains this practical limitation, as the lack of control over the withdrawal of funds (the 'Comptroller' function) is the primary reason the role is confined to post-expenditure audit.

Question 13

Consider the following statements regarding the audit powers and constraints of the CAG:
1. The CAG's audit of secret service expenditure is limited, as he must accept a certificate from the competent administrative authority regarding the expenditure.
2. The propriety audit, which examines the wisdom and economy of government expenditure, is an obligatory part of the CAG's function.
3. The CAG is an agent of the Parliament and is therefore responsible only to the Parliament for the conduct of audits.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is incorrect. While the CAG can conduct propriety audits to look into the 'wisdom, faithfulness and economy' of expenditure, this type of audit is discretionary, not obligatory. Legal and regulatory audits are obligatory. Statements 1 and 3 are correct descriptions of the CAG's constraints and accountability.

Question 14

With reference to the duties and powers of the CAG, consider the following statements:
1. The Constitution of India, under Article 149, exhaustively prescribes all the duties and powers of the CAG.
2. The CAG’s (Duties, Powers and Conditions of Service) Act, 1971, was amended in 1976 to separate accounts from audit for both the Central and all state governments.
Which of the statements given above is/are correct?

Accepted Answer

Neither 1 nor 2. Both statements are incorrect. Statement 1 is incorrect because Article 149 authorises the Parliament to prescribe the duties and powers of the CAG; the Constitution does not list them exhaustively. Statement 2 is incorrect because the 1976 amendment separated accounts from audit only for the Central Government, not for state governments, for whom the CAG continues to compile accounts.

Question 15

Consider the following pairs related to the reports and accounts handled by the CAG:
1. Audit report on accounts of the Centre : Submitted directly to the Public Accounts Committee.
2. Appropriation Accounts : Compare the actual expenditure with the expenditure sanctioned by Parliament.
3. Finance Accounts : Show the annual receipts and disbursements of the state governments only.
4. Audit report on accounts of a State : Placed before the state legislature by the Governor.
How many of the pairs given above are correctly matched?

Accepted Answer

Only two pairs. Only two pairs are correctly matched. Pair 1 is incorrect: The CAG submits the audit report on the Centre's accounts to the President, who then lays it before Parliament. Pair 2 is correct: Appropriation accounts compare actual expenditure against sanctioned expenditure. Pair 3 is incorrect: Finance accounts show the annual receipts and disbursements of the Union government (and similarly for states), not just states. Pair 4 is correct: The CAG submits the state audit report to the Governor, who places it before the state legislature.

Question 16

Consider the following public corporations:
1. Life Insurance Corporation of India
2. Reserve Bank of India
3. Oil and Natural Gas Commission
4. Food Corporation of India
How many of the above corporations are totally subjected to private audit, where the CAG does not come into the picture at all?

Accepted Answer

Only three. The audit of some corporations is done exclusively by private professional auditors, and the CAG has no role. Examples include the Life Insurance Corporation of India, Reserve Bank of India, and Food Corporation of India. The Oil and Natural Gas Commission, however, is audited totally and directly by the CAG. Therefore, three of the listed corporations fall into the private audit category.

Question 17

With reference to the Audit Board established as a part of the office of the CAG, consider the following statements:
1. The Audit Board was established to associate outside specialists for handling the technical aspects of auditing specialised enterprises.
2. The establishment of this board was based on the recommendations of the Sarkaria Commission.
Which of the statements given above is/are correct?

Accepted Answer

1 only. Statement 1 is correct; the Audit Board was created in 1968 to bring in outside experts for the technical audit of specialized enterprises like engineering and chemicals. Statement 2 is incorrect; the board was established on the recommendations of the Administrative Reforms Commission of India, not the Sarkaria Commission.

Question 18

Consider the following statements regarding the role of the Comptroller and Auditor-General (CAG) in auditing public sector undertakings:
1. The CAG's audit jurisdiction is uniform and comprehensive across all public corporations.
2. For certain corporations like the Reserve Bank of India, the CAG has no audit role whatsoever.
3. In the case of Government companies, the primary audit is conducted by private auditors, but the CAG retains the power to conduct a supplementary audit.
Which of the statements given above is/are NOT correct?

Accepted Answer

1 only. Statement 1 is not correct. The CAG's role is limited and varies across different public corporations, falling into three distinct categories of audit involvement. Statements 2 and 3 are correct. Some corporations like RBI are subject to exclusively private audit, and for Government companies, the CAG can conduct supplementary or test audits over and above the audit by private auditors.

Question 19

Given below are two statements:
Statement I: For certain public corporations, such as the Central Warehousing Corporation, the audit is conducted by private professional auditors.
Statement II: The appointment of private auditors for such corporations is made by the Central Government on the advice of the CAG, who can also conduct a supplementary audit.

In the context of the above two statements, which one of the following is correct?

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I.. Statement I is correct; corporations like the Central Warehousing Corporation are audited by private auditors. Statement II is also correct in describing the procedure for this category: private auditors are appointed by the Central Government in consultation with the CAG, and the CAG can conduct a supplementary audit. However, Statement II describes the complete procedure rather than being an explanation for why the audit is conducted by private auditors. It details the 'how' of the process mentioned in Statement I.

Question 20

Consider the following pairs:
Corporation : Audit Type
1. Damodar Valley Corporation : Audited totally and directly by the CAG.
2. Industrial Finance Corporation : Audited exclusively by private auditors with no CAG role.
3. State Bank of India : Audited by private auditors appointed in consultation with the CAG.
4. Air India : Audited totally and directly by the CAG.
How many of the above pairs are correctly matched?

Accepted Answer

Only two pairs. Pair 1 is correct: Damodar Valley Corporation is audited totally and directly by the CAG. Pair 2 is incorrect: Industrial Finance Corporation is audited by private auditors appointed in consultation with the CAG, who can also conduct a supplementary audit. Pair 3 is incorrect: State Bank of India is totally subjected to private audit with no CAG involvement. Pair 4 is correct: Air India is audited totally and directly by the CAG. Therefore, only two pairs are correctly matched.

Question 21

Consider the following pairs:
List-I (Article No.) : List-II (Subject-matter)
1. Article 149 : Audit reports
2. Article 150 : Duties and powers of the Comptroller and Auditor-General
3. Article 148 : Comptroller and Auditor-General of India
4. Article 151 : Form of accounts of the Union and of the States
How many of the pairs given above are correctly matched?

Accepted Answer

Only one pair. Only one pair is correctly matched. Article 148 correctly corresponds to the 'Comptroller and Auditor-General of India'. The correct matches for the others are: Article 149 deals with 'Duties and powers', Article 150 with 'Form of accounts', and Article 151 with 'Audit reports'.

Question 22

Consider the following statements regarding the constitutional articles related to the Comptroller and Auditor-General (CAG) of India:
1. Article 149 of the Constitution specifies the duties and powers of the CAG.
2. Article 150 deals with the submission of audit reports to the President or Governor.
3. The establishment of the office of the CAG is provided for under Article 148.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is incorrect. Article 150 pertains to the 'Form of accounts of the Union and of the States'. It is Article 151 that deals with 'Audit reports'. Statements 1 and 3 are correct as per the constitutional provisions.

Question 23

With reference to the constitutional provisions for the Comptroller and Auditor-General of India, consider the following statements:
1. The authority to prescribe the form of accounts for the Union and the States is derived from Article 150.
2. The duties and powers of the CAG are defined under Article 149.
Which of the statements given above is/are correct?

Accepted Answer

Both 1 and 2. Both statements are correct. Article 150 explicitly states its subject matter as the 'Form of accounts of the Union and of the States', and Article 149 outlines the 'Duties and powers of the Comptroller and Auditor-General'.

Question 24

Given below are two statements:
Statement I: Article 148 of the Constitution of India provides for the institution of the Comptroller and Auditor-General of India.
Statement II: The duties and powers associated with the office of the Comptroller and Auditor-General are also detailed within Article 148 itself.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement I is correct but Statement II is incorrect. Statement I is correct as Article 148 establishes the office of the CAG. However, Statement II is incorrect because the duties and powers of the CAG are not detailed in Article 148, but are specified in a separate provision, Article 149.

Question 25

Consider the following subject-matters:
1. Duties and powers of the Comptroller and Auditor-General
2. Form of accounts of the Union and of the States
3. Audit reports
4. The office of the Comptroller and Auditor-General of India
How many of the above are covered under Articles 149 to 151 of the Constitution of India?

Accepted Answer

Only three. The question specifically asks for subject-matters covered under Articles 149 to 151. These are: Article 149 (Duties and powers), Article 150 (Form of accounts), and Article 151 (Audit reports). The office of the CAG itself is established under Article 148, which is outside the range specified in the question. Therefore, only three of the listed items are correct.

Question 26

According to Paul H. Appleby's critique of the Indian administration,
how many of the following were his observations regarding the Comptroller and Auditor General (CAG)?
1. The CAG's function is an inheritance from colonial rule.
2. Auditing has a repressive and negative influence on administration.
3. Auditors generally possess superior knowledge of good administration.
4. The office of CAG should be strengthened with more responsibilities.

Accepted Answer

Only two. Paul H. Appleby was critical of the CAG. He stated that the CAG's role was a colonial legacy and that auditing had a negative, repressive influence, causing administrative paralysis. He argued the opposite of statement 3, claiming auditors know very little about good administration. He also recommended the abolition of the office, not its strengthening, making statement 4 incorrect. Therefore, only the first two statements reflect his views.

Question 27

Consider the following two statements:
Statement I: Paul H. Appleby argued that the function of the CAG in India is, in a large measure, an inheritance from the colonial rule.
Statement II: Appleby observed that the Indian Parliament has a greatly exaggerated notion of the importance of auditing and has failed to define the CAG's functions as the Constitution contemplated.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I.. Both statements are direct criticisms made by Paul H. Appleby. Statement I points to the historical origin of the CAG's role. Statement II criticizes the post-independence legislative body (Parliament) for its perception and handling of the CAG's functions. While both are part of his overall critique, Parliament's failure to define the role (Statement II) is not the reason why the role is a colonial inheritance (Statement I). They are two separate, though related, points of criticism.

Question 28

Consider the following statements regarding Paul H. Appleby's critique of the CAG.
1. Appleby suggested that the CAG should be relieved of the responsibility of audit.
2. According to Appleby, the CAG's work fosters a proactive and decisive administrative culture.
3. Appleby viewed auditing as a highly important function with a broad perspective on administration.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 and 3 only. Statement 1 is correct; Appleby did suggest that the CAG be relieved of audit responsibilities, as part of his overall recommendation to abolish the office. Statement 2 is incorrect; he argued the opposite, stating that the CAG is a 'primary cause of widespread and paralysing unwillingness to decide and to act'. Statement 3 is also incorrect; he described the function as 'not really a very important one' and having a 'narrow perspective'. The question asks for the incorrect statements.

Question 29

With reference to Paul H. Appleby's critique of the CAG, consider the following statements:
1. He opined that a deputy secretary in a department possesses more knowledge about its problems than the CAG and his entire staff.
2. He believed that the prestige of auditors is highest among those who are experts in public administration.
3. He ultimately recommended the abolition of the office of CAG.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. Statement 1 is a correct reflection of Appleby's view on the comparative knowledge within the administration. Statement 3 is also correct, as he suggested that the CAG should be relieved of audit duties, which amounted to a recommendation for the abolition of the office. However, Statement 2 is incorrect. Appleby stated that the prestige of auditors is 'highest with others who do not know much about administration', not with experts.

Question 30

Paul H. Appleby used several characterizations to describe the CAG's role and the function of auditing in India.
How many of the descriptions below are consistent with his critique?
1. A primary cause of paralysing unwillingness to act.
2. A highly pedestrian function.
3. An inheritance from colonial rule.
4. A function with broad usefulness and perspective.

Accepted Answer

Only three. Appleby described the CAG's role as a cause of administrative paralysis (1), a 'highly pedestrian function' (2), and an 'inheritance from the colonial rule' (3). However, he characterized the function as having a 'narrow perspective and a very limited usefulness', which is the direct opposite of the description in item 4. Therefore, only the first three descriptions are consistent with his critique.

Question 31

Considering the constitutional mandate and recent discussions on the functioning of the Comptroller and Auditor General (CAG) of India, evaluate the following statements:
1. The CAG's role is primarily post-facto, conducting audits after expenditure has occurred, which limits its ability to proactively prevent financial irregularities.
2. To ensure independence, the CAG is ineligible for any further office under the Government of India or any state after ceasing to hold office.
3. Unlike the CAG in Britain, the Indian CAG does not exercise exchequer control, meaning it cannot control the issuance of money from the public purse.
4. The CAG can conduct propriety audits, which are discretionary and involve assessing the wisdom and economy of government expenditure, not just its legality.

How many of the above statements are correct?

Accepted Answer

All four. All four statements are correct. 1. The current affairs text notes that the CAG's function is largely post-facto, like a 'postmortem'. 2. Both static and current affairs texts confirm the CAG's ineligibility for further government office to ensure independence. 3. The current affairs text explicitly contrasts the Indian CAG's role (Auditor-General only) with the British CAG, who also acts as a Comptroller with exchequer control. 4. The current affairs text clarifies that propriety audits are discretionary and allow the CAG to comment on the 'wisdom, faithfulness, and economy' of expenditure.

Question 32

In light of the recent news that 2023 saw a significant decrease in the number of CAG audit reports tabled in Parliament, consider the following statements regarding the implications for financial accountability:

1. The trend directly undermines the Parliament's ability to hold the executive accountable, as the CAG acts as an agent of the Parliament for this purpose.
2. The Public Accounts Committee's function as a 'guide, friend, and philosopher' to the CAG is hampered by the reduced volume of reports for examination.
3. This situation underscores the CAG's limited role as only an Auditor-General in practice, as executive expenditure is scrutinized only post-facto through these reports.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct; the CAG's reports are a primary tool for Parliament to ensure executive accountability in financial matters. Fewer reports mean less scrutiny. Statement 3 is also correct; the issue highlights the importance of the post-expenditure audit reports, as the CAG lacks 'Comptroller' powers to prevent expenditure beforehand. Statement 2 is incorrect because the roles are reversed; the CAG acts as the 'guide, friend, and philosopher' to the Public Accounts Committee, not the other way around. Therefore, only two statements are correct.

Comptroller and Auditor General of India

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